MetLife to Buy Eastern European Businesses from Aviva

MetLife, Inc. is hoping to expand its life insurance business in Eastern Europe by acquiring businesses in the Czech Republic, Hungary and Romania, the company in a statement.

The New York City-based company plans to purchase Aviva Czech Life, Aviva Hungary Life, and Aviva Romania Life and Pensions. The financial terms of the deal were not disclosed.

"MetLife is intent on investing and growing in high-potential markets," Michel Khalaf, MetLife's president for the Europe, Middle East and Africa region, said in a statement. "This transaction creates an excellent opportunity to reach more customers with a broader product and service offering, and further build scale in our existing operations in these countries."

Peter Stack, a MetLife spokesman, said the company sees near-term growth in these countries, but also expects more business potential in the long run. He said the acquisitions will solidify their position in the region. Stack said MetLife writes in several other Eastern European nations, including Poland, Russia, Bulgaria, Serbia, Ukraine, Romania and the Baltic nations.

The planned acquisitions come on the heels of MetLife's 2010 $16.2 billion buyout of American Life Insurance Co. That acquisition provided MetLife with a large footprint in Central and Eastern Europe (Best's News Service, Aug. 1, 2011). The purchase also boosted MetLife to the top of the high-growth emerging markets in Central and Eastern Europe, the Middle East and Latin America, according to BestLink.

Metropolitan Life Insurance Co. currently has a Best's Financial Strength Rating of A+ (Superior). On the afternoon of Jan. 30, shares of MetLife (NYSE: MET) were trading at $35.85, up 0.93% from the previous close.

(By Michael Buck, senior associate editor, BestWeek: Michael.Buck@ambest.com)